ICT Spending Growth in CEE in 2020 Expected to Fall Short of Previous Year
Overall ICT market spending in Central and Eastern Europe is forecast to grow by 3.1% in 2020, a decline from the 4.0% growth seen in 2019, according to IDC.
This development can be explained by the ongoing economic slowdown, with more rationalized spending in both the consumer and public sectors. IDC forecasts that total ICT spending (including telecom and business services) in the region will total $136.66 billion in 2019, with an expected compound annual growth rate of 2.9% through 2023.
"In Central and Eastern Europe, cost and efficiency are regularly at the top of business priorities. Companies should carefully consider where to tighten their belts, and to leverage new technologies that will facilitate cost savings rather than representing a burden on their budget," says Ivana Slaharova, Insights research manager at IDC CEMA.
Manufacturing, finance, and telecommunications make up the greatest share of spending in the business sector, accounting for about 48% (combined) in 2019. Telecommunications will be also the fastest developing industry, with IDC forecasting 6.3% growth in 2020. In 2019, 41% of the total ICT spending came from telecom services, followed by hardware (34%) and IT services (13%). Broken down by country, the biggest market is Russia ($47 billion in ICT spending), followed by Poland ($ 20.4 billion) and the Czech Republic ($10.9 billion).
In terms of organization size, large businesses (more than 500 employees) accounted for half of total ICT spending in 2019. Medium-sized businesses (100-499 employees) were responsible for around 23% of spending, followed by small businesses (17%) and small office/home office (nearly 10%).